A recent study on remittances flowing from SADC countries outside of South Africa to South Africa, managed by Cenfri commissioned by FinMark Trust and conducted by DNA Economics finds:
- An estimated 3.3m migrant workers from other SADC countries in South Africa, sending around R11.2 billion rand home each year;
- R7.6 bn of which is estimated to flow through informal channels such as sending cash with a bus or taxi driver;
- Zimbabwe accounts for the bulk of the cross-border remittances market: an estimated 1.9m (59%) of all SADC migrants are Zimbabwean and around R6.7bn (60% of total SADC remittances) is estimated to be sent to Zimbabwe each year.
Click here to download the full report (PDF, 0.56MB)
Click here to download the fact sheet (PDF, 0.28MB)
The sheer volume of cross-border remittance flows and the large proportion sent informally indicates not only an untapped market opportunity for the formal sector to capitalize on, but also a strong policy imperative to reduce access barriers to the formal financial system for migrant workers and facilitate formalization of cross-border remittances.
The study integrates a variety of available data sources, combined with insights from a series of dedicated focus group discussions held with migrants and bus and taxi drivers in order to estimate total migrant and remittance numbers.